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Relief for borrowers in moratorium case
Why is it in news?
- The Supreme Court directed banks that loan accounts in the clear till the expiry of the moratorium on August 31 should not be declared as non-performing assets (NPAs) till further orders.
Details:
- The order was passed amid apprehensions raised by individual borrowers and representatives of various commercial sectors on whether their loans would be declared NPAs on September 1.
- The court is examining the question whether compound interest (interest on interest) should be charged on loans deferred during the moratorium period.
- The Bench is also examining the powers of the Centre and the National Disaster Management Authority to provide relief to borrowers.